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TO 


FiRST    SB8SXOX 


OF    THK 


THIBTY-SEVEHTH  GENERAL  ASSEMBLY 


OF   THE    STATIC. 


NASHVILLK,  TENX.: 
FONES,   IM-RVrs   \-    CO PRINTKKs    To   TIIF.   STATK 

1871. 


UCSB  LfBRARV 


M  E  S  S  A.  G 


OP 


G 


TO  THE 


First  Session,  Thirty-Seventh  General  Assembly 


OF    TENNESSEE. 


OCTOBER    23,    1871. 


NASHVILLE: 

JONES,  PURVIS  &  CO., PRINTERS  TO  THE  STATE. 

1871. 


r-  *.-  •s     • 

OC       O)^- 


GOVERNOR'S  MESSAGE 


Gentlemen  of  the  Senate  and  of  the  House  of  Representatives: 

FULLY  impressed  with  the  delicate  task  imposed  by 
section  11,  Article  III,  of  our  State  Constitution,  I  approach  it  with  a 
full  conviction  that  you  will  appreciate  the  difficulties  that  have  at- 
tended me,  in  the  discharge  of  that  duty,  both  immediately  before,  and 
since  my  induction  into  office. 

The  only  reliable  sources  of  information  of  the  State  finances,  are 
the  Comptroller's  and  Treasurer's  offices,  and  by  Act  of  Assembly 
these  officers  report  directly  to  your  body,  and  their  reports  pass  the 
delay  of  printing  before  they  reach  the  Executive  office. 

Hence,  you  are  fully  advised  of  the  financial  condition  of  the  State 
before  I  can  officially  obtain  such  information. 

The  duties  awaiting  you  are  not  only  important,  but  most  respon- 
sible. Your  legislation  will  determine  the  question,  whether  Ten- 
nessee will  provide  for  the  payment  of  the  large  debt  entailed  upon 
her  by  the  casualties  and  results  of  war,  or  whether  it  will  be  indefi- 
nitely postponed,  until  our  credit  is  broken  down,  and  the  debt  be- 
comes so  large,  by  accumulating  interest,  that  its  payment  will 
bankrupt  the  people. 

The  legislation  of  the  last  two  years,  as  it  appears  to  me,  precludes 
any  discrimination  in  our  bonds,  upon  any  assumption  of  illegality  in 
their  issuance, 

The  Act  of  the  25th  February,  1869,  as  amended  -,  by  the  Act  of 
20th  January,  1870,  chapter  44,  permitting  Railroads  indebted  to  the 
State  by  reason  of  bonds  loaned  to  them,  to  cancel  their  obligations, 
with  bonds  of  any  series  or  number,  in  effect  acknowledges  a  liability 
of  the  State  to  pay  all  outstanding  bonds,  not  specially  excepted  by 
the  Act  itself,  or  amendments  thereto. 

The  Act  itself  makes  no  exception.  The  Act  of  6th  December, 
1870,  prohibits  the  Comptroller  of  the  Treasury  from  receiving  the 
bonds  issued  to  "The  Mineral  Home  Railroad  Company,"  and  the 
Act  of  the  29th  of  June,  1870,  forbids  the  redemption  of  the  bonds 
issued  to  "The  Insurance  Company  of  the  Valley  of  Virginia." 


And  by  interdicting  the  reception  of  no  other  bonds,  implied  au- 
thority is  thereby  given  to  receive  all  bonds,  not  excepted  in  those 
Acts. 

And  this  is  an  unmistakable  declaration  to  the  world,  that  all 
other  bonds  issued  under  the  semblance  of  law,  are  regarded  as  ob- 
ligatory upon  the  State. 

Accordingly,  bonds  to  over  eight  millions  of  dollars  have  been 
retired  and  cancelled — nearly  all  of  which  are  bonds  issued  since  the 
war. 

Other  roads  have  purchased  and  are  now  purchasing  bonds  with 
which  to  cancel  their  liabilities  to  the  State,  under  the  same  Act, 
which  is  unrepealed. 

It  would  seem,  therefore,  that  the  State  has,  by  implication,  at  least, 
admitted  its  liability  for  the  payment  of  all  outstanding  bonds  other 
than  those  specially  interdicted. 

The  bonds  outstanding  are,  all  of  them,  doubtless,  in  the  hands  of 
innocent  holders. 

These  considerations  alone  are  sufficient  to  determine  the  question 
that  Tennessee  must  and  will  redeem- the  entire  outstanding  bonded 
debt,  with  the  exceptions  stated. 

But,  independent  of  this,  and  as  a  question  of  sound  State  policy 
and  justice  to  the  holders  of  our  securities — some  of  whom  are  mi- 
nors, some  subjects  of  foreign  governments,  and  many  more  our  own 
citizens  who  made  the  investment  under  existing  laws,  relying  upon 
the  good  faith  of  the  State  as  implied  by  its  legislation — we  can  not 
discriminate  between  these  bonds.  And,  therefore,  it  is  only  a  ques- 
tion of  time  as  to  when  we  will  resume  the  payment  of  interest. 

After  exhausting  all  other  sources,  the  balance  of  bonded  debt, 
including  interest  to  the  1st  of  January,  1872,  as  will  be  seen  else- 
where, is  about  $19,493,173.66. 

Of  this,  $15,000,000.00  is  principal,  and  $4,493,173.66  is  accrued 
interest. 

The  interest  on  this  debt  must  be  paid  altogether  out  of  the  rev- 
enues of  the  State. 

With  a  floating  debt  of  $1,668,417.27,  besides  the  current  expenses 
of  the  Government,  (say  six  hundred  thousand  dollars  per  annum,) 
we  can  not  resume  the  payment  of  interest  until  the  floating  debt  is 
wholly  absorbed,  and,  of  course,  the  current  expenses  must  be  paid 
as  they  accrue. 

The  laudable  desire  of  the  people  for  retrenchment  in  the  public 


expenditures,  and  a  consequent  diminution  of  the  rate  of  taxation, 
ought  not  to  be  construed  into  a  desire  to  evade  the  provision  neces- 
sary for  an  economical  administration  of  the  Government,  or  the 
payment  of  the  obligations  of  the  State.  The  immense  loss  of  pro- 
perty sustained  during  the  last  ten  years,  and  the  unsuccessful  efforts 
in  agriculture  for  the  past  two  years,  make  it  most  desirable  that  the 
burthens  of  taxation,  if  possible,  be  alleviated. 

But  the  people  are  determined  to  preserve  the  honor  of  the  State 
by  meeting  fairly  all  her  obligations,  and  paying  all  her  necessary 
expenses.  This  is  their  first  desire,  and  secondary  and  subordinate 
to  this,  is  their  wish  to  reduce  the  rate  of  taxation. 

This  question  was  fully  discussed  throughout  the  State,  in  the 
canvass  which  resulted  in  our  election,  and  the  declaration  that  the 
whole  debt  must  be  paid,  met  with  the  unqualified  indorsement  of 
the  people. 

And  it  is  now  submitted  to  your  wisdom  and  patriotism,  as  well 
as  to  your  just  sense  of  State  pride,  whether  the  present  aggregate  of 
revenue  can  be  diminished. 

If  the  current  expenses  of  the  Government  are  not  provided  for,  its 
machinery  must  stop,  and  society  will  be  unprotected  against  crime. 

The  citizen  can  not  obtain  redress  of  his  wrongs,  noc,  enforce  his 
contracts  in  the  courts  of  justice. 

Under  a  decision  of  the  highest  judicial  tribunal  in  the  Govern- 
ment, we  are  required  to  redeem  the  legal  circulation  of  the  Bank  of 
Tennessee  in  the  hands  of  tax-payers,  which  makes  it  a  primary 
charge  upon  the  revenues,  and  takes  precedence,  practically,  of  the 
current  expenses  of  the  Government. 

Our  securities,  already  hypothecated  for  the  loan  of  over  two  hun- 
dred thousand  dollars  to  support  the  State  Government,  will  be  sac- 
rificed by  a  forced  sale,  if  we  fail  to  make  provision  for  its  payment. 

The  treasury  warrants  now  outstanding,  many  of  them  issued  to 
the  present  judiciary  and  other  officials  of  the  State  for  their  salaries, 
which  the  Jaw  requires  to  be  paid  in  money,  and  many  more  of  them 
for  the  school  fund  due  the  various  counties  out  01'  the  revenue  here- 
tofore collected  by  the  State,  under  every  legal  and  moral  considera- 
tion, should  be  paid  without  delay. 

The  practical  question  then,  presents  itself:  Can  we  pay  the  float- 
ing debt,  together  with  the  current  expenses  of  the  State  Government, 
at  a  diminished  rate  of  taxation,  and  resume  the  payment  of  interest 
at  an  early  day? 


6 

This  can  only  be  answered  by  a  careful  examination  of  the  sources 
of  revenue  and  the  aggregate  to  be  realized,  as  compared  with  the 
liabilities  to  be  met. 

FINANCIAL    CONDITION    OF   THE   STATE. 

I  beg  to  call  your  attention  to  the  financial  condition  of  the  State, 
as  shown  by  the  Comptroller's  Report,  made  to  the  present  General 
Assembly,  and  especially  to  the  amended  Report,  of  date  20th  of  Oc- 
tober, 1871,  made  to  me;  which  I  have  the  honor  herewith  to  trans- 
mit to  you,  with  the  accompanying  correspondence. 

It  will  be  seen  that  the  entire  indebtedness  of  the  State,  including 
the  floating  debt,  and  interest  on  the  bonded  debt  to  January  1st,  1872, 
after  deducting  the  amount  of  indorsed  Bonds  which  are  solvent,  to- 
gether with  Bonds  and  Coupons  paid  in,  is — 

§32,152,156  19 

Deduct  the  indebtedness  of  solvent  roads  that  pay  in- 
terest, with  interest  added  to  January,  1872,  viz : 

Memphis  &  Charleston, $1,911,771  33 

Mississippi  &  Tennessee, 435,320  50 

Mobile  &  Ohio, 1,785,240  00 

Mississippi  Central, 1,235,105  93 

Nashville  &  Chattanooga, 406,850  00 

Balance  from  Nashville  &  Decatur 2,240  00 

5,776,533  76 


Leaving  a  balance  of §26,375,622  43 

From  this  deduct  the  balance  due  from 

purchasers  of  delinqent  roads,  as  fol- 
lows : 

Memphis,  Clarksville  &  Louisville,... .$  849,800  00 

Interest  for  18  months, 76,482  00 

Edgefield  &  Kentucky, 675,000  00 

Interest  for  18  months, 60,750  00 

McMinnville  &  Manchester, 225,000  00 

Interest  for  18  months, 20,250  00 

Winchester  &  Alabama, 225,000  00 

Interest  for  18  months, 20,250  00 

Cincinnati,  Cum.  Gap  &  Charleston,...  300,000  00 

Interest  for  18  months, 27,000  00 

Kuoxville  &  Kentucky, 350,000  00 

Interest  for  18  months, 1*1,500  00 

Nashville  &  North- western, 1,700,000.  00 

Interest  for  18  months, 153,000  00 

4,714,032  00 


Leaving  balance  of §21,661,590  43 


Deduct  from  this  balance  the  estimated  value  of  delin- 
quent roads  not  yet  sold,  viz : 

Knoxville  &  Charleston, $    150,000  00 

Rogersville  &  Jefferson, 30,000  00 

East  Term.  &  Western  North  Carolina,        20,000  00 

Tennessee  &  Pacific,  say 300,000  00 

500,000  00 

Balance  of  Debt, $21,161,590  43 

Deduct  Floating  Debt  proper: 
Tenn.  Money  (old  issue)  unredeemed,. .$    710,000  00 

Treasury  Warrants  outstanding, *..      752,417  27 

Loan  Account, 206,000  00 

1,668,417  27 


Actual  balance  Bonded  Debt  and  Interest, $19,493,173  66 

Thus  it  appears,  that,  after  deducting  the  reliable  assets  and  secu- 
rities of  the  State,  other  than  taxes  levied  and  uncollected,  there 
remains  an  actual  indebtedness  of  §21,161,590.43,  which  must  be 
provided  for.  Of  this  amount,  $1,668,417.27  is  floating  debt;  and 
the  bonded  debt,  with  interest  to  the  1st  of  January,  1872,  is  $19,- 
493,173.66.  Of  this  latter  amount,  about  $15,000,000  is  principal, 
or  bonds  with  no  interest  added. 

Until  the  accrued  and  accruing  interest  is  funded,  and  the  payment 
of  current  interest  is  provided  for,  the  debt  will  increase  every  year  on 
the  balance  of  bonded  debt,  about  $900,000,  in  the  way  of  interest. 
With  these  figures,  it  needs  no  argument  to  prove  that  it  is  the  most 
disastrous  policy  to  postpone  the  resumption  of  interest  payments. 

While  I  have  earnestly  hoped,  and  sincerely  believed,  that,  by 
adopting  the  policy  of  funding  the  interest  on  the  bonded  debt,  up 
to  and  including  July  1,  1873,  we  could  discharge  our  floating  debt, 
and  resume  the  payment  of  interest  at  that  date,  and  at  a  reduced 
rate  of  taxation,  yet,  after  a  careful  examination  of  the  whole  ques- 
tion, I  can  not  see  how  a  material  reduction  can  be  made,  unless  new 
and  reliable  sources  of  revenue  can  be  made  available,  sufficient  to 
supply  such  deficit  as  may  result  from  a  reduction. 

The  following  estimates  are  relied  on  as  approximately  correct : 
Balance  bonded  debt  without  interest,  $15,000,000  00 
Past  due  coupons,  and  coupons  ma- 
turing January  1,  1872, 4,970,590  93—19,970,590  93 

Interest  on  $15,000,000  from  January  1, 1872,  to  July 

1,  1873, 1,350,000  00 


If  this  interest  is  funded,  the  bonded  debt  would  be,  $21,320,590  93 


8 

Interest   to   January   1,    1874,   six 

months, $     639,602  72 

Interest  to  July  1,  1874, 639,602  72 


Annual  interest, §1,279,205  44 

Estimated  current  expenses, 600,000  00 


Amount  to  be  paid  annually, $1,879,205  44 

RESOURCES    FOR   PAYMENT. 

§300,000,000  of  taxable  property,  at 
50  cents  per  $100,  and  deducting 
13  per  cent,  for  losses  and  costs  of 
collection, $1,300,000  00 

Net  taxes  on  merchandise  and  privi- 
leges,   450,000  00—  1,750,000  00 

Showing  a  deficit  of $129,205  44 

This  deficit  must  be  supplied  from  new  sources  of  revenue. 

The  theory  of  taxation  in  Tennessee  is  not  based  upon  the  idea  of 
incomes  or  profits  from  wealth,  but  upon  absolute  values,  privi- 
leges, etc. 

Section  28  of  Article  XI  of  the  Constitution,  provides,  that  "all 
property,  real,  personal  or  mixed,  shall  be  taxed ;  but  the  Legislature 
may  except  such  as  may  be  held  by  the  State,  by  counties,  cities  or 
towns,  and  used  exclusively  for  corporation  or  public  purposes,  and 
such  as  may  be  held  and  used  for  purposes  purely  religious,  chari- 
table, scientific  or  educational,  and  shall  except  one  thousand  dollars' 
worth  of  personal  property  in  the  hands  of  the  tax-payer,  and  the 
direct  product  of  the  soil  in  the  hands  of  the  producer  and  his  imme- 
diate vendee."  *  *  "But  the  Legislature  shall  have  power  to  tax 
merchants,  peddlers  and  privileges,  in  such  manner  as  they  may  from 
time  to  time,  direct,"  etc. 

And  the  only  exception  to  the  rule  that  taxation  is  upon  the  idea 
of  values  and  privileges  alone,  is  found  in  another  provision  in  the 
same  section,  viz:  "The  Legislature  shall  have  the  power  to  levy  a 
tax  upon  the  incomes  derived  from  stocks  and  bonds  that  are  not 
taxed  ad  valorem." 

Under  these  provisions,  it  is  difficult  to  perceive  how  county  and 
corporation  bonds,  in  the  hands  of  citizens  of  this  State,  can  be 
exempt  from  taxation ;  nor  how  State  bonds  can  escape,  only  so  far 
as  there  may  have  been  a  condition  annexed  by  the  State  to  the  sale 


of  her  bonds.     And  yet,  by  section  19  of  the  Act  of  March  1,  1869, 
chapter  45,  all  such  bonds  are  exempt  from  taxation. 

It  has  been  the  policy  of  the  State  for  a  great  many  years,  to  tax 
all  suits,  appeals  and  writs  of  error,  as  well  as  presentments  and  in- 
dictments in  courts  of  record,  and  considerable  annual  revenue  is 
derived  from  these  sources.  If  this  is  justifiable,  (and  it  has  never 
been  seriously  questioned,)  there  is  no  reason,  either  in  principle, 
policy  or  justice,  why  litigation  before  Justices  of  the  Peace  should 
not  pay  a  reasonable  tax.  There  are  three  thousand  Justices  of  the 
Peace  under  commission  in  the  State,  and  if  they  average  each  twenty- 
five  cases  in  a  year,  the  whole  number  of  cases  is  seventy-five  thou- 
sand, and  at  an  average  tax  of  $2,  would  yield  to  the  Treasury  $150,- 
000  per  annum. 

Many  of  the  States  of  the  American  Union,  tax  the  execution  of 
the  bonds  of  all  trustees;  and  if  a  tax  upon  the  execution  of  a  deed 
can  be  justified,  the  argument  would  apply  with  equal  force  to  bonds. 
There  are  many  thousand — perhaps  thirty  or  forty  thousand  -  of 
these  bonds  executed  every  year,  and  with  a  moderate  tax  they  would 
yield  a  large  sum. 

It  must  be  borne  in  mind,  that  in  a  few  years  the  railroads  of  the 
State  will  be  taxable,  according  to  their  value.  Upon  those  first  con- 
structed, the  exemption  provided  by  their  charters  will  soon  expire, 
and  we  may  reasonably  cherish  the  hope  that,  with  a  healthy  adjust- 
ment of  our  finances,  and  a  wise  legislative  policy,  each  year  will 
develop  new  wealth  from  the  vast  natural  resources  of  the  State,  and 
that  every  assessment  will  diminish  the  rate  of  taxation. 

The  floating  debt,  together  with  the  current  expenses  of  the  State 
Government,  can  be  paid  by  the  1st  of  January,  1873,  out  of  the 
taxes  heretofore  levied,  but  yet  uncollected,  with  an  assessment  of 
five  mills  or  fifty  cents  to  the  $100  for  the  year  1872. 

Floating  debt, $1,668,417  27 

Balance  expenses  for  1871,  estimated  at  $    250,000 

Expenses  for  1872, 600,000 

Balance  of  unexpended  appropriation  for 

Capitol  grounds, 100,000—      950,000  00 

$2,618,417  27 

Revenues  uncollected,  say, $1,200,000 

Revenues  for  1872,  say, 1,750,000— $2,950,000  00 

Leaving  an  excess  of. $331,582  73 

But  in  this  calculation,  there  is  no  estimate  made  of  the  unascer- 


10 

tained  expenses  incurred  in  selling  the  delinquent  roads,  nor  of  such 
appropriations  as  may  be  made  by  the  present  General  Assembly,  nor 
of  debts  claimed  of  the  State,  by  the  United  States  Government  on 
account  of  the  Edgefield  &  Kentucky,  and  the  Memphis,  Clarks- 
ville  &  Louisville  Railroad,  the  nominal  amount  of  which  is  £501,- 
560.82,  but  has  not  been  included  in  the  floating  debt,  because  the 
amount  and  liability  are  now  undergoing  adjustment. 

It  is  believed  that  these  unestimated  amounts,  can  be  paid  out  of 
this  apparent  surplus.  Then,  if  the  uncollected  taxes,  together  with 
the  levies  for  1872,  will  pay  all  the  floating  debt  and  the  expenses  for 
this  and  the  ensuing  year,  it  is  confidently  believed  that  we  can  fund 
the  accrued  interest  on  the  bonded  debt,  and  resume  the  payment  of 
interest  on  the  first  day  of  January,  1874,  at  a  rate  of  fifty  cents  on 
the  one  hundred  dollars,  or  even  at  a  less  rate,  if  the  necessary  re- 
forms in  the  revenue  system  are  effected,  and  the  new  sources  of 
revenue  made  available. 

I  therefore  recommend  that  you  provide  for  the  funding  of  all 
coupons  matured,  or  maturing  to  1st  of  July,  1873,  as  well  as  all 
bonds  due  or  maturing,  by  authorizing  the  issuance  of  bonds  with 
coupons  attached,  at  a  rate  of  interest  not  greater  than  six  per  cent., 
to  mature  thirty  years  after  date,  and  that  they  commence  to  bear 
interest  from  and  after  the  first  day  of  July,  1873,  and  provide  that 
funding  commence  at  once.  You  will  thus  declare,  that  the  State  of 
Tennessee  will  resume  the  payment  of  interest,  commencing  with  the 
coupons  maturing  the  1st  of  January,  1874,  for  which  your  successors 
will  provide. 

Tennessee,  with  all  her  glorious  memories  of  the  past  clustering 
around  her,  can  not  afford  to  repudiate  her  public  debt.  Nor  can 
she  longer  submit  to  the  humiliation  of  having  her  securities  fluctu- 
ated in  the  markets  by  "speculating  rings,"  whose  loud  sympathy 
for  an  "over-taxed  people"  is  measured  by  their  desire  to  buy  bonds 
at  a  sacrifice,  and  sell  them  at  a  profit.  An  unreasonable  delay  in 
providing  for  the  debt  is  practical  repudiation,  and  will  reflect  its 
baleful  consequences  not  only  upon  the  credit  of  the  State  as  a  whole, 
but  upon  its  individual  members. 

TAX   SALES. 

Your  attention  is  invited  to  the  fact  that,  for  many  years,  lands 
sold  for  taxes  under  section  622  of  the  Code  have  been  purchased 
in  the  name  of  the  Treasurer,  as  Superintendent  of  Public  In- 


11 

struction,  for  the  use  of  common  schools.  And  in  the  majority 
of  instances,  the  only  result  of  these  sales  has  been  to  charge  the 
State  with  large  bills  of  cost  advanced  from  the  school  fund  to  pay 
the  expenses  of  selling  the  land. 

Such  lands  are  rarely  redeemed,  and  the  original  owners  are 
never  disturbed  in  the  possession  or  enjoyment  of  them.  It  is 
generally  lands  held  upon  speculation,  or  in  large  bodies,  that  are 
sold.  And  this  system  is  an  immunity  to  those  delinquents  against 
the  payment  of  taxes,  and  the  honest  tax  payer  is  the  sufferer, 
because  the  deficits  thus  created  are  made  up  by  increased  assess- 
ments against  him.  A  large  amount,  perhaps  many  hundred 
thousand  dollars  of  the  revenue,  remains  uncollected  under  this 
law,  and  legislation  is  required  under  which  the  lands  can  be  re- 
sold, if  not  redeemed. 

It  is  recommended,  also,  that  the  section  of  the  Code  referred  to 
be  repealed,  and  in  its  stead  stringent  laws  be  enacted,  by  which  the 
tax  on  lands,  like  that  on  personal  property,  may  be  made  available 
to  the  Treasury  of  the  State.  The  Collectors  often  fail  in  their 
duty,  in  not  exhausting  the  personal  property  before  reporting 
lands  for  sale. 

This  should  be  remedied  under  proper  penalties  and  restrictions 

THE   ASSESSMENT   OF   PROPERTY. 

Section  28  of  Article  II  of  the  Constitution  provides,  that  "All 
property  shall  be  taxed  according  to  its  value;  that  value  to  be 
ascertained  in  such  manner  as  the  Legislature  may  direct,  so  that 
taxes  shall  be  equal  and  uniform  throughout  the  State." 

"No  one  species  of  property,  from  which  a  tax  may  be  collected, 
shall  be  taxed  higher  than  any  other  species  of  property  of  the  same 
value." 

This  provision  of  the  Constitution  will  be  violated,  if  the  mode  of 
assessment  does  not  result,  as  near  as  possible,  in  taxing   property 
according  to  its  value,  and  so  that  taxes  shall   be  uniform  through- 
out the  State. 

Any  plan  of  assessing  property  which  does  not  meet  this  require- 
ment is  in  palpable  violation  of  the  Constitution. 

And  any  system  which  fails  to  assess  all  property  subject  to 
taxation,  will  be  in  conflict  with  another  provision  of  the  same 
article,  requiring  "all  property  to  be  taxed"  excepting,  etc.,  etc. 

The  practical  workings  of  existing  laws,  for  the  assessment  of 


12 

taxable  property,  produce  great  dissatisfaction,  resulting  in  op- 
pression to  a  large  class,  because  of  the  great  inequality  of  assess- 
ments of  property  of  the  same  market  value. 

There  are  too  many  Assetsors  in  each  county.  Each  Assessor 
has  his  own  peculiar  views  and  plans  upon  which  to  base  bis 
estimates,  and  the  result  is,  that  there  is  an  absence  of  uniformity  in 
the  valuation  of  property. 

It  often  occurs  that  tracts  of  land  lying  contiguous  to  each  other, 
of  the  tame  quantity,  quality  and  value,  diifer  in  their  actual  assess- 
ments, from  fifteen  to  one  hundred  per  cent.,  and  only  because  they 
are  separated  by  an  imaginary  district  line,  and  assessed  by  different 
officers. 

It  is  but  justice  to  all  classes,  and  especially  to  the  honest,  prompt 
tax  payer,  that  a  uniform  valuation  be  made  throughout  the  entire 
State,  so  that  all  may  bear  equally  the  burthens. 

The  officers  upon  whom  this  task  is  imposed  in  the  various  civil 
districts,  would,  doubtless,  be  greatly  relieved  by  such  additional 
legislation  as  would  exempt  them  from  some  of  the  responsibility, 
and  frequently  odium,  which  is  cast  upon  them  in  the  performance 
of  the  delicate  task  of  affixing  a  valuation  to  their  neighbor's 
property. 

I,  therefore,  recommend  that,  as  an  amendment  to  the  present 
system.,  the  County  Courts  be  required  to  appoint,  for  their  respect- 
ive counties,  a  Board  of  Revenue  Assessors,  consisting  of  three  or 
five  men,  who  shall  be  charged  with  the  duty  of  assessing  all  tax- 
able property  in  their  respective  counties,  and  that  they  shall  be 
required  to  base  their  valuation  of  all  lands  upon  the  written 
evidence,  in  the  form  of  depositions,  of  not  less  than  three  resident 
freeholders  of  the  civil  district  in  which  the  lands  are  situated, 
touching  the  value  of  each  tract  of  land  in  their  district;  said  depo- 
sitions to  be  taken  in  the  civil  districts  where  the  land  lies,  before 
some  Justice  of  the  Peace  of  said  district,  by  whom  the  depositions  shall 

be  returned  to  the  Board  of  Assessors  on  or  before  the day 

of  — : in  each  year,  and  filed  by  them  with  their  returns  to  the 

County  Court. 

And,  inasmuch  as  there  is  generally  no  standard  of  cash  values 
affixed  to  lands,  the  value  upon  certain  credits  to  be  fixed  by  law 
should  first  be  ascertained  by  the  Assessors  from  the  proof,  and  then 
they  should  reduce  it  to  a  cash  basis  by  a  uniform  rule,  to  be  pre- 
scribed by  law.  No  freeholder  who  is  willing  to  bear  his  just  pro- 


13 

portion  of  the  public  burthens,  in  consideration  of  the  protection 
afforded  his  life  and  property  by  the  Government,  can  complain  of 
this  system.  The  testimony  of  his  neighbors  is  invoked  to  do 
justice  between  him  and  the  State.  The  same  rule  is  applied  to  his 
neighbor.  All  landholders  are  placed  upon  an  equality,  and  pay 
taxes  in  proportion  to  the  actual  value  of  land  owned  by  each. 

It  is  also  recommended  that  schedules  of  all  taxable  property 
shall  be  required  of  each  tax  payer,  under  proper  and  just  re- 
strictions, and  with  necessary  penalties  annexed;  to  be  received  by 
the  District  Assessor  from  the  tax- payer,  and  to  be  by  them  de- 
livered, on  or  before  the day  of in  each  year,  to  the 

Board  of  Assessors  of  their  county. 

SOLVENT     RAILROADS. 

It  is  my  duty  to  remind  you,  that,  unless  you  repeal  existing  laws 
permitting  solvent  roads  to  pay,  in  past  due  coupons,  the  interest  on 
the  bonds  loaned  them  by.  the  State,  the  State  must  continue  to 
receive  from  them  past  due  coupons  in  payment  of  interest,  and 
pay  the  bondholder  in  currency,  by  taxing  the  people. 

The  bonds  originally  issued  by  the  State,  with  subsequent  bonds, 
to  fund  accrued  interest,  for  which  these  solvent  roads  are  liable, 
are  as  follows,  to-wit: 

Memphis  &  Charleston  Railroad, $1,864,387  45 

Mobile  &  Ohio  Railroad, 1,684,800  00 

Mississippi  Central   Railroad, 1,199,180  00 

Mississippi  &  Tennessee  Railroad, 417,800  00 

$5,166,167  45 

The  annual  interest  on  this  amount  is  about  $300,000.00,  and 
this  yearly  burden  will  continue  until  there  are  no  past  due  cou- 
pons in  the  market. 

The  delay  of  the  solvent  roads  that  have  not  retired  their  in- 
debtedness to  the  State,  under  the  Act  of  20th  of  January,  1870,  to 
avail  themselves  of  the  benefits  of  the  Act,  indicates  an  indisposition 
to  do  so. 

And,  inasmuch  as  more  than  eighteen  months  have  elapsed  since 
this  legislation  was  adopted,  I  recommend  that  the  Act  be  either 
repealed,  to  take  effect  at  some  future  time,  not  remote;  or  that  its 
provisions  be  so  amended  as  that  the  roads  be  required  to  pay  all 
accrued  interest,  as  well  as  the  sinking  fund  not  heretofore  paid  in. 

The  reason  for  this  suggestion  is,  that  ample  time  has  elapsed  for 


14 

these  roads  to  have  aided  the  State  in  diminishing  her  outstanding 
indebtedness,  under  this  most  liberal  legislation,  if  disposed  to  do  so. 
And  the  continuance  of  this  policy  affords  an  opportunity  for 
speculative  transactions,  injurious  to  the  credit  of  the  State,  and  in 
no  way  beneficial  to  the  great  mass  of  the  people. 

While  the  railroads  of  the  State  should  be  fostered,  and  receive 
all  necessary  aid  and  assistance,  yet  they  must  not  be  allowed  to  be- 
come oppressive  monopolies,  at  the  expense  of  the  prosperity  of  the 
general  community. 

DELINQUENT   RAILROADS. 

There  remain  but  three  of  the  delinquent  railroads  unsold. 

The  information  you  have,  through  the  report  of  the  Commission- 
ers appointed  to  sell  the  delinquent  roads,  is  all  you  desire  on 
that  subject.  It  will  be  a  gratifying  result  when  the  State  is  en- 
tirely divorced  from  the  railroad  system. . 

And,  although  the  sales  will  not  realize  all  that  was  desired,  and 
leaves  a  large  debt  to  be  provided  for,  yet  the  internal  improvement 
system  of  Tennessee  has  added  millions  to  her  wealth,  and  diffused 
such  energy  and  enterprise  into  every  class  of  society,  that  no-  in- 
telligent man  can  regret  the  policy  which  inaugurated  the  system, 
notwithstanding  a  large  amount  of  appropriations  made  since  the 
war  may  have  been  improperly  expended. 

Commerce,  trade  and  manufactures,  have  been  promoted  and  mul- 
tiplied; population  has  largely  increased,  and  the  value  of  real  estate 
enhanced  over  one  hundred  millions  of  dollars. 

TURNPIKE    ROADS. 

The  State,  in  the  liberality  of  legislators,  inspired  with  a  laudable 
desire  to  open  up  communications  between  the  producer  and  the 
marts  of  trade,  contributed,  from  time  to  time,  large  sums  in  the 
form  of  bonds,  to  building  turnpike  roads,  amounting,  in  the  aggre- 
gate, to  about  $1,317,356.60. 

These  roads  have  contributed  much  to  develop  the  resources  of 
the  State,  and  have  largely  enhanced  the  aggregate  of  wealth. 

Many  of  these  roads,  however,  were  neglected  during  the  late 
civil  war,  and  some  of  them  became  almost  worthless. 

The  State  is  now  prohibited,  by  organic  law,  from  issuing  bonds 
to  aid  in  rebuilding  these  roads,  and  she  can  not  contribute  from  her 
revenues  anything  for  that  purpose. 


15 

Only  six  of  these  pay  any  dividends  into  the  State  Treasury. 

I,  therefore,  respectfully  recommend  that  immediate  action  be 
taken  for  the  sale  of  the  State's  interest  in  such  of  the  turnpike 
roads  as  pay  no  dividends. 

The  probability  is,  that  these  roads  may  be  purchased  and  re- 
paired by  private  enterprise,  and  again  become  useful  to  the  country, 
and  remotely,  if  not  directly,  add  to  the  revenue  of  the  State. 

The  roads  that  pay  no  dividends  to  the  State,  as  shown  by  the  re- 
port of  the  Secretary  of  State,  are  as  follows,  viz.: 
Xashville,  Murfreesboro  &  Shelby ville   cost  the  State....  $66,666  60 

Nashhville  &  Kentucky  cost  the  State 50,000  00 

Franklin  &  Columbia  cost  the  State 75,900  00 

Nashville  &  Charlotte  cost  the  State 30,000  00 

Columbia,  Pulaski  &  Elkton  cost  the  State... 126,606  00 

Clarksville  &  Russellville  cost  the  State 37,500  00 

Columbia  Central  cost  the  State 139,000  00 

Ashport  cost  the  State 35,000  00 

Big  Hatchie  cost  theState 12,000  00 

Chambers  &  Purdy  cost  theState 7,500  00 

Forked  Deer  cost  the  State 7,000  00 

Fulton  cost  the  State 6,000  00 

Rogersville  &  Little  War  Gap  cost  the  State 15,000  00 

Bristol  and  Kendr ix  Creek  cost  the  State 20,000  00 

Jacksboro,  Powell's  Valley  &  Cumberland  Gap  cost  the 

State 8,000  00 

Mulberry  Gap  &  Rogersville  cost  the  State 50,000  00 

Harpeth  cost  "the  State 39,000  00 

Jefferson  cost  the  State 45,000  00 

Murfreesboro,  Manchester  &  Winchester  cost  the  State..     49,890  00 
Pelham  &  Jasper  cost  the  State 44,000  00 

Total, $864,062  60 

The  other  turnpike  roads  yield  a  revenue  to  the  State,  and  it  would, 
perhaps,  be  unwise  to  sell  them. 

PENITENTIARY. 

I  have  seen  no  report  from  the  officers  of  this  institution,  and  will 
hereafter  make  it  the  subject  of  a  special  message. 

In  the  meantime  I  can  not  too  earnestly  recommend  that  your  com- 
mittees, charged  with  the  duty  of  considering  the  legislation  neces- 
sary for  the  State  prison,  be  directed  to  familiarize  themselves  with 
the  results  of  experiments  made  under  the  present  organization,  de- 
signed to  make  the  prison  self-sustaining,  and  at  the  same  time  to  di- 
vert convict  labor  from  mechanical  pursuits. 


16 

It  is  proper,  also,  to  state  that  the  terms  for  which  the  present  offi- 
cers were  appointed,  will  expire  after  the  termination  of  your  regu- 
lar session. 

PUBLIC  EOADS. 

The  importance  of  improving  the  ordinary  thoroughfares  of  the 
country,  is  so  manifest  that,  an  argument  in  that  direction  is  super- 
fluous. 

It  is  universally  conceded  and  lamented,  that  the  country  roads  are 
in  a  worse  condition  since  the  war  than  ever  before,  and  no  remedy 
has  yet  been  presented. 

We  can  not  now  assess  a  general  tax  upon  the  State,  with  the  heavy 
tax  already  unavoidable,  to  improve  the  roads.  Much  relief  might 
be  afforded  by  authorizing  the  counties  .to  levy  a  road  tax,  and  ap- 
point road  inspectors,  charged  with  the  duty,  at  stated  intervals,  of 
inspecting  all  the  public  roads  of  the  county,  and  reporting  their  con- 
dition both  to  the  County  Court  and  to  the  Grand  Jury. 

Such  legislation  would  place  it  in  the  power  of  each  county  to  have 
good  roads  at  a  small  expense.  This,  it  is  believed,  together  with  the 
labor  of  the  misdemeanor  gang  of  the  county,  and  felony  convicts  of 
inferior  grades,  would  very  greatly  remedy  existing  evils. 

COMMON  SCHOOLS. 

The  last  General  Assembly,  actuated  by  a  commendable  desire  to 
promote  learning,  authorized  the  several  counties  to  establish  and 
support  common  schools. 

And  whether,  as  an  original  proposition,  that  system  meets  our  ap- 
probation, yet,  inasmuch  as  it  has  proven  eminently  successful  in  the 
counties  adopting  it,  it  would,  perhaps,  be  unwise  to  disturb  it  until 
a  fair  experiment  demonstrates  what  changes,  if  any,  are  necessary. 

"We  can  not  if  we  would,  disguise  the  lamentable  fact,  that  there 
are  a  large  number  of  children  in  the  State  deprived  of  instruction 
in  the  ordinary  principles  of  an  English  education. 

Intelligence  is  a  large  element  in  the  enterprise,  prosperity  and 
happiness  of  every  community,  and  so  far  as  facilities  can  be  afford- 
ed, the  education,  of  the  people  should  be  aided  and  advanced.  And 
if  legislation  can  be  devised  by  which  the  present  system  could  be 
more  generally  and  effectually  tested,  great  good  might  result  there- 
from, and  future  legislation,  if  need  be,  more  intelligently  directed 
toward  the  perfection  of  this,  or  the  adoption  of  some  other  system, 


17 

by  which  the  educational    necessities  of  the  State  would  be  fully 
met. 

This  question  will,  of  course,  receive  at  your  hands  the  careful  con- 
sideration its  great  importance  demands. 

ASYLUM  FOR  THE   INSANE. 

The  reports  of  the  Trustee,  Superintendent  and  Treasurer,  will  be 
transmitted  in  a  few  days,  by  special  message. 

From  the  Superintendent,  I  learn,  officially,  that  the  number  of  in- 
mates within  the  last  two  years,  has  considerably  increased;  and  that 
the  number  of  applicants  for  the  privileges  and  benefits  of  this  nec- 
essary charity,  is  rapidly  increasing. 

During  the  past  two  years,  additions  to  the  building  have  been 
commenced,  and  have  progressed  near  to  completion,  the  cost  of  which 
has  been  borne  in  part  from  amounts  collected,  due  the  Institution 
from  former  pay-patients,  as  well  as  from  a  portion  of  the  proceeds 
of  the  sale  of  the  Old  Lunatic  Asylum  property,  as  authorized  under 
An  Act  of  the  General  Assembly,  of  June  8th,  1870,  together  with 
the  application  of  a  part  of  the  appropriation  foi%  current  expenses. 

The  legislation  which  may  be  necessary  in  behalf  of  a  just  and  lib- 
eral maintenance  of  this  charity  in  all  its  departments,  will  more  ful- 
ly appear  from  the  official  reports  of  the  officers;  and  when  they  are 
transmitted  to  you,  I  shall  make  such  suggestions  for  your  consider- 
ation as  shall  then  present  themselves,  under  a  careful  examination 
of  the  whole  subject;  and  at  the  same  time  recommendations  will 
be  made,  in  behalf  of  the  other  charitable  institutions  of  the  State, 

COUNTY  WOEK-HOUSES. 

*  In  seeking  to  curtail  and  reduce  the  unnecessary  expenses  of  the1 
Government,  your  attention  will  doubtless  be  directed  to  the 
immense  cost  incurred  in  the  prosecution  of  criminals — -amounting  to 
$150,000  or  200,000  per  annum. 

By  the  establishment  of  a  proper  system  of  work-houses  in  each 
county  the  State  might  be  relieved  of  the  greater  part  of  this  burden  * 

More  than  one-third  of  the  740  inmates  now  in  the  State  Prison 
are  undergoing  punishment  for  the  crime  of  petit  larceny. 

I  would  respectfully  recommend  that  the  criminal  laws  be  so  amend- 
ed as  to  provide  for  the  punishment  of  this  offense  as  well  as  others 
of  the  same  grade,  as  well  as  all  cases  of  misdemeanor,  by  confine- 
ment and  labor  in  the  several  counties  where  the  law  may  have  been 
2 


18 

violated.  By  labor  upon  the  public  roads,  bridges  and  buildings, 
the  prisoners  may  be  made  to  reimburse  the  county  for  the  expense  of 
their  confinement,  and  the  cost  of  conviction,  which  ought  in  the 
first  instance,  to  be  paid  out  of  the  county  revenue. 

CAPITAL  AND   LABOR. 

Tennessee  has  all  the  natural  elements  necessary  to  make  her  the 
wealthiest  among  the  States  of  America. 

She  has  room  for  millions  more  of  population,  and  capital  without 
limit  could  find  a  rich  return  to  its  investment  in  mining  and  manu- 
facturing. 

We  need  more  working  men  who  are  willing  to  identify  themselves 
with  our  country  and  our  people,  and  aid  earnestly  and  actively  in 
subordinating  to  trade  and  commerce  the  countless  wealth  not  yet 
wrested  from  nature's  hand. 

Such  means  as  will  best  inform  the  world  of  Tennessee's  vast  re- 
sources, the  salubrity  of  her  climate  and  fertility  of  her  soil,  together 
with  a  settlement  of  our  finances  upon  a  permanent  basis,  is  all  that 
is  required  to  attract  hither  all  the  labor  and  capital  we  need. 

THE   JUDICIARY. 

It  is  respectfully  represented  that  in  some  of  the  densely  populated 
Judicial  Circuits,  the  overcrowded  condition  of  the  dockets  causes  de- 
lay in  the  hearing  of  civil  causes,  to  the  detriment  of  litigants,  and 
often  postpones  the  trial  of  presentments  and  indictments  on  the 
criminal  dockets,  in  violation  of  the  rights  of  the  accused. 

.The  wrong  done  the  State  in  swelling  bills  of  cost  is  considerable. 
It  is  apparent  that  the  only  remedy  is  either  to  curtail  the  circuits  or 
create  Criminal  Courts,  which  may  be  temporary  or  permanent,  as 
the  wants  of  the  community  may  in  your  opinion,  require. 

CRIMES  AND   CRIMINALS. 

The  criminal  laws  will  be  carefully  examined  by  you,  and  revised 
if  found  imperfect;  so  that  criminals  may  be  speedily  and  certainly 
arrested  and  made  answerable  before  the  courts  for  their  offenses. 

I  pledge  the  Executive  Department  to  exhaust  every  remedy  af- 
forded it  by  law  for  the  arrest  of  all  criminals  of  every  character; 
and  I  shall  spare  no  effort  to  execute  the  law  as  I  find  it  upon  the 
Statute  Book. 

In  conclusion,  I  must  say,  that  on  account  of  the  limit  fixed  to 


19 

your  ssession,  I  have  felt  constrained   to  hasten  this  communication 
before  I  could  see  the  Treasurer's  report. 

There  are  other  subjects  I  shall  bring  to  your  attention  before  your 
adjournment,  and  so  soon  as  detailed  information  can  be  had. 

I  have  now  performed  my  duty  under  a  clear  conviction,  that 
whether  you  accord  with  me  in  the  policy  suggested,  you  will  be 
guided  alone  by  a  sincere  and  enlightened  desire  to  advance  the  gen- 
eral welfare;  and  may  He,  who  is  the  Sovereign  of  States,  guide  your 
deliberations  in  harmony,  to  the  promotion  of  prosperity  and  happi- 
ness among  all  the  people. 

And  may  peace  reign,  and  concord  prevail  in  all  our  borders. 

JOHN  C.  BROWN, 


CORRESPONDENCE. 


EXECUTIVE  OFFICE,  1 

NASHVILLE,  TENN.,  Oct.  19, 1871.  / 

Sin : — I  respectfully  call  your  attention  to  the  official  report,  as 
submitted  to  the  General  Assembly,  of  date  1st  October,  1871,  and 
ask  you  to  review  the  credit  side  of  the  account,  in  the  statement 
making  up  the  indebtedness  of  the  State.  It  appears  to  me  there  is 
an  omission  to  give  credit  by  the  proper  amount  of  interest  upon  the 
bonds  retired,  and  upon  the  indebtedness  of  the  purchasers  of  solvent 
railroads ;  and  there  are  perhaps  some  clerical  or  typographical  errors 
in  the  account;  After  a  revision,  if  you  find  any  alteration  neces- 
sary, please  submit  me  an  amended  report  of  that  statement. 
Respectfully,  your  obedient  servant, 

JOHN  C.  BROWN,  Governor. 

To  ED.  R.^PENNEBAKEE,  State  Comptroller. 


COMPTROLLER'S  OFFICE,  \ 

NASHVILLE,  TENN.,  Oct.  20,  1871.  / 

SIE  :- — I  find  that  an  estimate  of  interest  on  the  retired  bonds  since 
the  date  they  were  delivered  to  me,  as  well  as  an  estimate  of  interest 
on  the  balance  due  from  purchasers  of  delinquent  railroads,  was  in- 
advertently omitted  in  stating  the  account  of  the  State's  indebted- 
ness. I  find,  also,  some  clerical  errors  in  the  statement ;  I  have  care- 
fully revised  it,  and  have  the  honor  herewith  to  submit  an  amended 
report,  including  also  a  statement  of  railroads  sold  since  the  date  of 
my  Report,  which  I  am  satisfied  is  correct,  and  respectfully  ask  that 
it  be  transmitted  by  you  to  the  General  Assembly. 
Respectfully,  your  obedient  servant, 

ED.  R.  PENNEBAKER,  Comptroller. 

To  His  ExceUency,  JOHN  C.  BEOWN,  Governor. 


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